Retailers and other businesses that accept or issue coupons are scrutinizing their own tax collection practices following recent class actions threatening to upend the industry. In an article published in Law360,Faegre Baker Daniels tax advocacy attorneys Benjamin Blair, associate, and Francina Dlouhy, partner, explained the delicate relationships between taxes and coupons and how they vary from state to state. They also offered several best practices businesses can employ to reduce their risk of being sued.
“No system can practically and perfectly consider every possible variation relating to the taxability of products sold by local and national retailers,” the article explained. “[B]ut those retailers not already in the crosshairs of class action litigants should take every opportunity to reduce their exposure, before they find themselves the next target.”